2025 was a pivotal year for the diamond industry. The bifurcation of the market became undeniable: the divergence between Natural Diamonds and Lab-Grown Diamonds is now absolute. For the investor and the borrower, understanding this split is critical.
The Collapse of Lab-Grown Pricing
In 2025, lab-grown diamond prices continued their freefall due to infinite supply. From a lending perspective, New York Loan Company maintains a strict policy: We do not lend against lab-grown diamonds. They have little to no secondary market value. They are a consumer electronic, not a luxury asset.
Natural Diamonds: The Resiliency of Scarcity
Conversely, natural diamonds—specifically those of high quality (D-F color, IF-VS clarity)—held their ground. The closure of major mines (like Argyle) has constrained supply.
- Large Stones (3ct+): These remain highly liquid.
- Fancy Shapes: Ovals and Cushions have outperformed Rounds in terms of demand growth this year.
The “Investment Grade” Threshold
To consider a diamond an “asset,” it typically needs to meet certain criteria:
- Certification: GIA is the only standard that matters globally.
- Size: Generally 1 carat and above, but for investment purposes, 3 carats is the sweet spot.
- Quality: No fluorescence, excellent cut.
Lending Against Diamonds
Diamonds are one of the most portable forms of wealth. They are also incredibly easy to collateralize. If you own GIA-certified natural diamonds, you have access to immediate capital. Do not be swayed by the marketing of synthetics; natural stones remain the only true store of value in the gemstone world.
